You are on page 1of 6

INTRODUCTION

India has started its industrial development programs in early


1955. A very important component of environment is the
industrial sector. Them are many industrial policies put forwarded
by the government towards the established functioning and
growth of industries. Industrial development of a country is
guided by industrial policy. The basic and main purpose of every
organization is to co-ordinate the effort of many people towards
the achievement of a common objective. Every organization has
got its own objective and plot to attain its common goal. A
company can attain its common goal only through hard work and
co-operation of workers. Every member of the organization is
responsible for As achievement of target and goals. An
organization can survive for long unless it takes core of prudent
utilization of resources.
An organization study will help to have a better idea about the
functions of each department in details and the duties and
responsibilities of each and every personnel in a particular
department. It will Aso provide a better picture about the
organizational structure and the hierarchy of various position in
the organization. So alter the organization study the trainee will
have very clear picture of the functioning and the methods
adopted in the organization and will help the trainee in the
knowing a lot about the basic functioning of the organization. The
study will helpful not only for the trainee but also for anybody
going through this report and ,will give a clear picture about the
organization.
In short. a good business is generally the result of good
organization and a good organization can emerge only if it
consists of good people whole work together. This study was
conducted at AUTOKAST Limited S.N Puram, Cherthala. Autokast
was established in the year 1982 as a subsidiary of steel
Industrial Kerala ltd (SILK). A Government of Kerala undertaking

for the manufacture of steel, grey iron and spheroidal graphite


iron castings. Subsequently Autokast limited is linked from holding
SILK from June 2008 onwards. It is a manufacturing company of all
kinds of ferrous castings.

INDUSTRY PROFILE
HISTORY OF METAL CASTING INDUSTRY
Metal casting is one of the oldest industries in india. Earliest use
of casting is found in the manufacturing of tools, arrows, statues,
etc. subsequently its scope increased progressively with the
change in requirement patterns and developments in other fields
of manufacture. Total metal casting is one of the mother
industries which supply essential components for the other
engineering and manufacturing operations such as automobiles,
agriculture electrical. electronic. iron and steel production etc.
Great advances have been achieved in the capacity of production
of casting in our country dealing the 1.t 40 years after
independence.
Though substantial progress have been made in the pasi the
foundry industry is facing various problems like shortage, poor
quality and high price of input materials like pig iron, steel scrap
etc.

THE GLOBAL SCENARIO


Metal casting industry provides approximately I% of the
manufacturing GDP The industry employs a quarter of a million
people in all states. with a total annual payroll close to $7 billion
(DOC 1996). Small and medium size foundries dominate As

industry. with about 80% of all foundnes employing fewer than


100 people and only 6% having staff larger than 250.
The United States lead all other countries in the world, producing
metal castings in 1997, supplying one- fifth of the world's total
shipments of 67 million tones. The nearest competitor is China.
with about 16% of the total. Public and private research
institutions and organization are part of the infrastructure of the
metal casting industry. R&D expenditure in 1997 was about
evenly divided between nonferrous metals and ferrous metals.

INDIAN SCENARIO
The lndian metal casting (Foundry industry) is well established.
According to the recent world census of casting by modem
castings. USA ranks India as number 4 country in the world
producing an estimate of 6 Million MT of various grades of casting
as per international standards. The various types of castings
which are produced are ferrous, nonferrous, Aluminum Alloy,
graded cast iron, ductile iron, steel etc. for application in
Automobiles. Railways, pumps compressors & Valves. Diesel
Engines. Cement/Electrical/Textiles Machinery, Aero & sanitary
pipes &Fittings etc. And casting for special applications. However,
Grey iron castings have the major share approximately 70% of
total casting produced.
There are approximately 4500 units out of which 80% can
classified as small scale units & 10% each as Medium & Large
Scale units. Approximateley 500 units are having & are working at
nearly full capacity. Most foundries use cupolas using LAM Coke.
There is growing awareness about environment and many
foundries arc switching over to induction furnaces & some units in
Agra are changing over to coke less cupolas.

With the rapid growth of the Indian automobile. especially the


auto ancillary industry. the demand for the automotive castings is
almost unpr000dented and the Indian foundry industry is facing
its greatest challenge to become an Asian huh for supply of high
quality machined castings for these industries. If the Indian
foundry industry is able to gear up itself on two main counts, viz.
the production capacity and the quality sticking to delivery
schedule requirements, the nest few years could he the golden
era for our industry. This means efforts would have to be made by
the Institute of Inchon Foundry mcn (IIF) as an industry
association along with others like confederation of Indian industry
(CII) and even the World constant seminars. workshops Foundry
men organization (WFO) to increase the level of quality awareness
and industrial visits.
The Indian found, Industry occupies a special place in
shaping the country's economy. India is currently among the
largest producers of ferrous and non-ferrous castings and has
over 4500 foundries in the small, medium, and large scale
sectors. Approximately 90% are in the small scale. India exports
annually above Rs.700/- Crores.
worth of castings to commie, his USA, U.K. Canada,
Germany, etc. There are more than 5000 foundry units India,
having an installed capacity of approximately 7.5 million tons per
annum. The majority (nearly 95%) of the foundry units in India
falls under the category of small-scale industry. It is an important
employment provider and provides direct employment to about
half a million people. A peculiarity of the foundry industry in India
is its geographical clustering.
Foundry market in India registered production of 9.05 to
tones of castings in 2010-11 and is growing at a CAGR of 6% since
2006-07. Growing concern regarding the quality and quantity of
castings will drive the establishment of larger casting facilities in
India over the next few years. Due to growing demand from the

automobile and engineering sectors coup. with India's rapidly


growing economy, the foundry market is expected to grow
strongly in the near future. India was the fastest growing top-ten
nation in 2009, increasing its casting tonnage by 9% over 2008.
Change in the regional production of the global foundry market
has also been added. Foundry market has been growing
consistently in India, with grey iron castings accounting for the
biggest share of total castings produced. Foundry units are mostly
concentrated in the small units sector. Sector wise consumption of
castings shows the various sectors where castings are largely
consumed.
An analysis of the drivers and challenges explains the factors
leading to the growth of the market including increasing demand
from automobile sector, strong economic growth, and supportive
government participation, low cost of labor and improving
technology and modernization. Strong opportunity exists in the
market as increasing demand for castings will drive the
production of such products. This coupled with the fact that the
Indian economy is growing strongly will lead to a developing
market. Additionally, improving production technology and
government support will help to stimulate growth in this market.
The key challenges identified arc market constraints, rising input
costs and low capacity utilization. Restriction to local markets and
infrastructure constraints deters the growth of this market.
Fluctuating input costs and supply and low capacity utilization
also acts a major bottleneck.
The foundry industry is labor intensive and labor costs in
India arc some of the lowest in the world. Also constructing and
registering new casting facilities are quicker and cost effective.
Regulations governing Environment, Health and Safety for
foundries are nearly non-existent and cost of dies and tooling is
significantly lower than in developed countries, although tooling
quality may not be as good. As per industry associations, casting
production capacity to touch 10 million MT by 2012. and

additional investment of US$2bn required in achieve this growth.


Opportunity in domestic as well as Export market makes hi-tech
foreign players to collaborate with local technology collaborations
to bring Local suppliers up the value chain and cuter to newer
markets. Then there are several premium cars are manufactured
in India such as Audi. Bentley, BMW, Chevrolet, Lamborghini,
Mercedes, Rolce Royce, Volkswagen. These companies are
consolidating their operations and vendor base, global casting
and component companies trending to follow their customers to
destinations like India.
India offers several operational advantages to casting and
component manufacturing companies. Even as the Indian Foundry
industry is growing at a healthy rate of 15 per cent annually
owing to increasing share of local manufacturing in the GDP and
strong demand from international markets, the supply of iron ore,
the principal raw material for foundries, has become a major
cause for concern with mining in Karnataka, One and Chhattisgarh
facing severe impediments.
The supply of uninterrupted power in the entire major
foundry clusters of West Bengal, Karnataka, Punjab, Tamil Nadu,
and Gujarat, is poor. In Tamil Nadu, Foundries are being forced to
run just one shift per day. Besides, every year, the power tariff is
going up significantly. The ban on mining of iron ore in Karnataka
and Goa has impacted the supply of high grade iron ore for pig
iron. The foundries being MSME units are not in a position to
secure supplies from far off states, as it will significantly increase
the cost of production. For the next five years, the Indian Foundry
industry will be on the growth trajectory, reaching an all-time
highest of 20 per cent.